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2019 (7) TMI 1964 - AT - Income Tax


Issues involved:
1. Allowance of deduction u/s 80P(2)(i)(ia)
2. Consideration of insertion of section 80P(4) and sub-clause (viia) to section 2(24)
3. Fulfillment of conditions under section 56(c)(ccv) of Part V of the Banking Regulation Act, 1949

Issue 1: Allowance of deduction u/s 80P(2)(i)(ia):
The case involved appeals by the Revenue against the CIT(A)'s order concerning the deduction u/s 80P(2)(i)(ia) of the Income Tax Act, 1961. The Assessing Officer disallowed the deduction claimed by the Co-operative Credit Society under section 80P, stating that the deduction for Co-operative Banks had been withdrawn from AY 2007-08, except for specific categories. The CIT(A) allowed the deduction based on previous ITAT orders. The Revenue argued that the deduction should not have been allowed due to the insertion of section 80P(4) and sub-clause (viia) to section 2(24) post-2007. However, the assessee contended that the issue was resolved in their favor in previous ITAT orders.

Issue 2: Consideration of insertion of section 80P(4) and sub-clause (viia) to section 2(24):
The Revenue contended that the CIT(A) erred in allowing the deduction u/s 80P without considering the post-2007 amendments. They argued that the order should be set aside and the AO's decision restored. Conversely, the assessee relied on previous ITAT decisions in their favor, asserting that the CIT(A)'s order should be upheld. The Tribunal referred to precedents where it was clarified that section 80P(4) does not apply to entities that are not cooperative banks, supporting the assessee's position.

Issue 3: Fulfillment of conditions under section 56(c)(ccv) of Part V of the Banking Regulation Act, 1949:
The AO disallowed the deduction under section 80P, citing that the assessee did not fulfill the conditions under section 56(c)(ccv) of Part V of the Banking Regulation Act, 1949. However, the CIT(A) allowed the deduction based on previous ITAT rulings in the assessee's favor. The Tribunal, following the precedent set by the Coordinate Bench, confirmed the CIT(A)'s order, emphasizing that the facts and issues were identical to previous cases where the deduction was allowed.

In conclusion, the ITAT Mumbai dismissed the Revenue's appeals, upholding the CIT(A)'s decision to allow the deduction u/s 80P for the Co-operative Credit Society based on previous judicial precedents and the specific provisions of the Income Tax Act and Banking Regulation Act.

 

 

 

 

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